Oracle EBS R12.1 Purchasing Essentials (1Z1-520) Free Practice Test

Question 1

Your customer has two manufacturing plants. The manufacturing process for both the plants is identical, but there are differences in specific areas.
1. Plant 1 uses min-max planning and Plant 2 uses re-order point planning.
2. Plant 1 and Plant 2's Variable Lead Times are different.
3. Plant 1 and Plant 2 use two different WIP (Work In Process) supply subinventories.
Which two attribute control settings meet the requirement? (Choose two.)

A. Master Level: Stockable, Transactable, Build in WIPOrganization Level: Inventory Planning Method

B. Master Level: Transactable, Inventory Planning Method, Variable Lead Time

C. Master Level: WIP Supply Subinventory, Variable Lead Time, Stockable, Transactable, Build in WIP

D. Master Level: Stockable, Variable Lead Time, Inventory Planning Method Organization Level:
Transactable

E. Organization Level: Variable Lead Time, WIP Supply Subinventory

F. Organization Level: WIP Supply Subinventory

Correct Answer: A,E

Question 2

ACME is using cycle counting and the quantity variance approval tolerances are specified at the cycle count header level, cycle count Class level, and cycle count item level. When tolerances are set up at all the levels, which tolerance is considered first by Inventory?

A. Cycle count item level

B. Subinventory level

C. Cycle count header level

D. Unit cost level

E. Cycle count class level

Correct Answer: A

Question 3

Which two activities should be completed before Purchasing is closed for a period? (Choose two.)

A. Complete all inventory and expense receipts for the current period.

B. Pay all invoices for the current period including those that have not been received.

C. Open the new purchasing period.

D. Complete and approve all the purchase orders for the current period.

E. Approve all purchasing requisitions for the current period.

F. Resolve all unordered receipts.

Correct Answer: A,F

Question 4

Select three options available when creating the Security profile for Multi-Org Access Control. (Choose three.)

A. View all Organizations

B. Secure by Operating Unit and Inventory Organization

C. Secure by Business Groups

D. Secure by Inventory Organizations

E. Secure Organizations by Organization list and/or hierarchy

Correct Answer: A,B,E

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Question 5

You import requisitions from another system. These requisitions are imported as approved requisitions and contain references to items in the item master and blanket purchase agreements.
What is the easiest way to automatically create orders from these requisitions?

A. Running the Create Releases program.

B. Using the AutoCreate form.

C. Running the Purchasing Documents Open Interface.

D. Running the Workflow Background Processor.

Correct Answer: A

Question 6

A Blanket Purchase Agreement Is created with the following cumulative price break:
Quantity > 0: Unit Price = $5
Quantity > 20: Unit Price = $4
Single line, single distribution releases are created as follows:
Release# 1 with quantity 15
Release# 2 with quantity 10
What are the unit price values on the releases?

A. Release1 $5, Release2 $4

B. Release1 $4, Release2 $4

C. It depends on the price tolerance for the line.

D. Release1 $5, Release2 $5

E. Release1 $5, Release2 $4 for a quantity of 5 and $5 for a quantity of 5

Correct Answer: A

Question 7

For performing an ABC analysis, you need to define ABC Compile, ABC Classes, and ABC Assignment Groups. Identify two correct actions. (Choose two.)

A. Link an ABC Group to an ABC Compile.

B. Enable an ABC Group in Subinventories.

C. Assign an ABC Group to an ABC Class.

D. Link an ABC Compile to an ABC Group.

E. Assign an ABC Class to an ABC Group.

Correct Answer: D,E

Question 8

Daily Business Intelligence pages provide summarized content for a particular functional area. Identify three features that the pages contain. (Choose three.)

A. Key Performance Indicators (KPIs)

B. Reports

C. Parameters

D. Responsibilities

E. Regions

Correct Answer: A,C,E

Question 9

View the Exhibit.

Your client was creating an express receipt. While saving the receipt, it failed. Identify the most logical reason for the failure.

A. A manual action was performed in one of the lines before clicking the Express button.

B. Instead of a purchase order number, a supplier name was specified in the Find Expected Receipts window.

C. The Early/late Receipt Date Tolerance is exceeded and the Exception Control is Warning.

D. Location is not available for Expense Destination Type and the Destination Type is Receiving.

E. Location is not available for Expense Destination Type and the Destination Type is Final Destination.

Correct Answer: E

Question 10

Which table stores the categories assigned to a system item?

A. MTL_CATEGORIES_B

B. MTL_ITEM_CATEGORIES

C. MTL_CATEGORIES_TL

D. FND_ITEM_CATEGORIES

Correct Answer: B

Question 11

Application program interface (API) is a software transaction connector for a specific function within Oracle Purchasing. Select three options that describe the function of APIs. (Choose three.)

A. Load Receipts

B. Load Requisitions

C. Load Receipt Returns

D. Cancel Purchase Orders

E. Custom Pricing

F. Purchasing Order Changes

G. Load Purchase Orders

Correct Answer: D,E,F

Question 12

Your client requires Org A to supply Org B with inventory on a need basis. The Internal Order flag is checked.
An internal requisition has been created and approved. What type of receipt would Org B have to perform to receive the goods?

A. RMA receipt

B. Receipt by Shipment Number

C. Inter-Org Transfer

D. Purchase Order receipt

E. Account Alias receipt

Correct Answer: B

Question 13

ACME is implementing Inventory in a make-to-order manufacturing environment, where there is on-hand inventory for 200 different motors. For these purchasable items, given the proper profile setup, Min-max can automatically create _____.

A. an expense account

B. an inventory Accounts Payable accrual account

C. an encumbrance account

D. records in the Purchase Order Requisition interface table

E. an invoice price variance account

Correct Answer: D

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Oracle EBS R12.1 Purchasing Essentials (1Z1-520) Free Practice Test